Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SIEMENS AG-REG. We currently have 23 research reports from 1 professional analysts.
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Beating expectations and guidance raised!
01 Feb 17
In Q1 16/17 ending in December, revenues increased marginally by 1.2% to €19.12bn. The order intake, however, declined by 14.2% from €22.8bn to €19.5bn and the order backlog reached €115bn. The book-to-bill ratio is still hovering at around 1.02. The decline in order intake was due to large orders booked in Q1 15/16. Base orders remained stable. EBIT jumped 25.9% to €2.24bn and the EBIT margin increased from 9.4% to 11.7%. Net income increased 24.8% to €1.9bn. Eight out of the nine divisions were within the profit target range.
Digitalisation has been a must-have option for years!
08 Dec 16
Siemens presented its digital business on the innovation day. According to the company, total generated digital revenues grew 12% and reached €4.3bn. Around €3.3bn is software revenues and €1bn service revenues. The company employs over 17,500 software developers or 5% of the total workforce. The digital business contributed 5.4% to total revenues and is cross functional. The main digital activities are located in the Digital Factory division which generated total revenues of around €10.2bn, mainly with PLM software solutions. Assuming a similar cost structure as the software industry, the EBIT margin should range between 16% and 17%, which is a little higher than the EBIT margin of the Digital Factory division (15.3%). The acquired company Mentor Graphics will contribute an additional €1.1bn to the “Digital Factory” in the financial year 2016/17. Siemens is promoting the cloud-based and open operating system for the Internet of Things MindSphere. MindSphere will work as a platform between software and service solutions and electrification and automation.
Mentor Graphics, a perfect but expensive match
14 Nov 16
Siemens acquired Mentor Graphics for an enterprise value of US$4.5bn, or US$37.25 per share, in cash. Based on the closing price of 11 November, Siemens paid a premium of 21%. The closing of the deal is expected in Q2 16/17 (end of March). Mentor Graphics will be part of the PLM software business and integrated into the Digital Factory division. The valuation of the company is quite ambitious. Siemens is paying EV/Sales (2017E) 3.7x, EV/EBITDA 23.1x and EV/EBIT 34.3x. Siemens’ management could have bought the company earlier. In January 2016, the share priced collapsed 36.5% to US$17.43. Before the acquisition price was announced, the share price had again reached all-time high levels. Around 99.24% of the shares is owned by institutional investors, of which around 17% are hedge funds. Elliot Management, which owns 8% of the company, has already agreed to support the transaction.
Exceeding twice-raised guidance
10 Nov 16
In Q4 16 ending in September, revenues increased by 2.9% to €21.9bn. Profit from the so-called industrial business reached €2.45bn (market estimates €2.41bn). EBIT grew 9.8% to €1.79bn and the EBIT margin improved from 7.6% to 8.2%. Net income increased 20.1% to €1.15bn. Order intake however declined 14% to €20.3bn mainly due to large orders in Q4 15 (windpower of around €1.2bn and a large power & gas order in Egypt). Base orders even increased marginally in Q4 16. The book-to-bill ratio reached 0.93x. In the financial year 2015/16, revenues increased 5.3% to €79.6bn and the order intake rose 5% to €86.48bn. The book-to-bill ratio reached 1.09x. Net income declined 25.2% to €5.45bn but excluding the income from the sale of the hearing aids business and the joint venture with Bosch (BSH), net profit remained stable. Management proposed a dividend increase of €0.10 to €3.60 per share. The guidance for 2016, which was raised twice, was exceeded.
Return on equity reduced by law
13 Oct 16
In Germany, the regulatory environment for the grid network has changed. The German Network Agency (Bundesnetzagentur) has changed the imputed return on equity which will apply for the next five years. The current regulatory periods for gas and electricity will expire in 2017 (gas) and 2018 (electricity). The new regulations for gas will apply as of January 2018 and for electricity 2019. The new return on equity for new assets will be reduced from 9.05% to 6.91% and for so-called old assets (activation prior January 2006) will decline from 7.14% to 5.12%. In each case without inflation and before corporate tax and after trade tax. According to estimates the lowered return on equity (equity ratio 40% max.) will reduce the yield by around €650m per year.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.
Scott deal puts spotlight back on corporate strategy and valuation
17 Mar 17
The acquisition of Scott Safety by 3M announced yesterday is not a huge surprise but it puts the spotlight back on (1) Avon’s corporate strategy as two strong competitors merge and (2) Avon’s break-up valuation given the rich multiple (12.9x EBITDA) being paid by 3M. Avon and other competitors, particularly MSA Safety, cannot ignore the fact that Scott, which is the leader in SCBA (self-contained breathing apparatus) market and 3M, which derives the bulk of sales from industrial hard hats and masks, would together have the most comprehensive portfolio of products in the PPE (Personal Protective Equipment) market. The good news for investors is that if we were to apply similar EBITDA multiple, then Avon’s Protection & Defence business alone would account for the entire market cap. In effect, at the current share price, investors are getting the Dairy business for free. Our sum-of-the parts model now values the shares at 1,279p, up 7% compared with 1,200p previously.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017